Measuring your pour and shrinkage when you serve drinks is an absolute must for calculating your bar inventory. But itâs only the beginning to determining your profits and loss percentages. So what are your actual cost percentages versus your optimal cost percentages and how do you determine those calculations?
Pour and usage
Your pour measurements are probably finitely calculated down to the millilitre, and your staff will have been trained on what constitutes a single and double pour, no doubt. After all, if itâs alcohol, that information is covered in Bartending 101 and regulated by law, known as specified quantities. Is there more to the story? Are your team free-pouring? Free-pours lead to over-pours which can easily become judgment error or habit and potentially inventory abuse.
Shrinkage
Shrinkage is the disappearance of pre-calculated inventory volume. If youâre in the business, you will already be au fait with this concept, but maybe your measurement methods havenât provided you with the proper tool kit to gain control over the mounting problem.
Stock shrinkage is found when your inventory usage doesnât add up to your expected stock remainder. The discrepancies are found when you run a stocktake.
Did you know that the average bar takes a 15-20% loss of profit margin due to a mixture of employee carelessness and theft?
Stocktake
Getting the calculations right to create accurate data is the point, but if you are doing it through manual stocktake, you will be costing yourself time, and time is money. The most accurate data is not found by doing the inventory count yourself, and employing your staff to count bottle after bottleâempties, opened, and full. It is a waste of time and money when they could be mixing and selling drinks. Thereâs got to be a smarter way.
Zeroing in on the problem
When a hospitality establishment plays it fast and loose with their inventory management procedures, they limit their chances of survival. If youâre tallying beverage levels by âeyeballingâ the bottle, unless youâre a visual mathematics savant, the data will not be accurate.
Missing inventory
The dark side of any businessâs profit loss is theft. Although it is no fun to talk about, theft is real, and itâs a serious problem for anyone who serves beverages.
Most employees will not rob you blind, but then many may not think that giving an attractive customer a birthday drink on the house is a form of stealing. Just because the employee didnât personally take a drink or pocket the profits, they gave away something that didnât belong to them.
Another scenarioâwhere the employee does benefit personallyâwhat if itâs been a hectic night tending bar or running food, one drink on the house wonât hurt, right? Wrong again. Theft always hurts someone, usually more than one.
Additionally – are your suppliers delivering the right amount of goods? How often do you count their deliveries and raise credit notes for missing or damaged items?
Whatâs the remedy for this problem? Policy clarity and proper staff training is a must, but thereâs another safeguard against inventory shrinkage.
Weighing the odds
In this case, âoddsâ means open bottles of stock. If you are not weighing your open product, you need to start immediately – especially for high value items. Itâs the only way to get an accurate reading of your inventory and detect problems.
Finding your formula
Try these formulas to gauge your pour and shrinkage percentages.
The solution â POS to inventory management software
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